Orion Group Holdings, Inc. · NYSE:ORN
Orion — Orion Marine Group — Conference Presentation (2014)
16 slides from Orion's conference presentation, 2014
Slide 1: Company Update
HEAVY CIVIL MARINE CONTRACTOR
Slide 2: Safe Harbor Statement
Safe Harbor Statement The matters discussed in this presentation may make projections and other forward- looking statements regarding, among other things, estimates for the remainder of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending awards, as
Slide 3: Leading Heavy Civil Marine Contractor
Leading Heavy Civil Marine Contractor Orion Marine Group specializes in heavy-civil marine construction Operates in shallow water environments (typically <= 50 ft) Services: marine facilities construction (bridges, docks, pipelines, environmental), dredging, specialty services Diverse customer
Slide 4: Financial Strength
Financial Strength Solid financials help drive future growth in markets and projects Conservative balance sheet Solid cash position Access to capital markets $400 million in bonding capacity Strategic long-term focus on growth 4
Slide 5: Experienced Management Team
Experienced Management Team Mike Pearson, CEO, announces his retirement at the end of 2014 Mr. Pearson will remain on the board Mark Stauffer named President and will become CEO at the end of 2014 Chris DeAlmeida named Chief Financial Officer About Mark & Chris: Mark Stauffer - President H
Slide 6: Book to Bill Ratio Remains Strong
Book to Bill Ratio Remains Strong 2.50x 2.12x 2.00x 2.00x 1.48x 1.50x Book-to-Bill 1.33x 1.30x 1.29x 1.29x 1.18x 1.07x 1.10x 1.00x 0.88x 0.71x 0.73x 0.68x 0.68x 0.55x 0.50x 0.32x - 6
Slide 7: Healthy Backlog Level
Healthy Backlog Level 2011 2012 2013 2014 $300 $281.6 $255.3 $243.9 $243.7 $250 $215.4 $217.1 $216.5 $200 $193.7 $184.1 Backlog ($ Millions) $164.5 $146.1 $150.4 $150 $140.5 $119.8 $100 $50 $0 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 7
Slide 8: Win Rate Remains Solid
Win Rate Remains Solid Dollar amount of projects bid and won in the Second Quarter Amount Bid $429 Million $117 Million Amount Won 8
Slide 9: Improving Market Conditions
Improving Market Conditions Strong market fundamentals Capital projects providing bid opportunities in the private sector Corps lettings pace improving after inconsistent first half of 2014 Pricing pressure has stabilized on marine construction jobs – seeing some pockets of improvement 9
Slide 10: Bid Market Outlook Remains High
Bid Market Outlook Remains High We believe there are ample opportunities to continue to grow our market database $6.5 $6.5 $6.5 $5.0 $4.5 $ Billions 2010 2011 2012 2013 2014 10 Source: Internal Company Database
Slide 11: Preparing For The Expansion
Preparing For The Expansion Panama Canal Expansion Expansion delayed until 2015 Gulf and East Coast Ports deepening channels and expanding facilities to handle larger ships Recent Survey by the AAPA predicts $22.1 billion in Capital spending by ports along the Gulf Coast alone for 2012 - 2016
Slide 12: Corps Vital To Waterways
Corps Vital To Waterways US Army Corps of Engineers is the primary funding source for the Nations Waterways $2.9 $2.9 Annual Fiscal Year Budget $2.5 $2.5 $2.5 $2.4 $2.4 $2.4 $2.3 $ Billions $1.7 $1.7 $1.7 $1.7 $1.7 $1.7 $1.6 $1.5 $1.4 2007 2008 2009 2010 2011 2012 2013 2014 2015* Operations & Mainte
Slide 13: Coastal Restoration
Coastal Restoration RESTORE Act recently signed into law by the President dedicates 80% of fines against parties responsible for the 2010 oil spill to go towards coastal restoration in the 5 Gulf Coast States Fines have yet to be levied but are estimated to be between $5 - $20 billion as dictate
Slide 14: Bridges Are In A State Of Disrepair
Bridges Are In A State Of Disrepair 2013 Infrastructure Report Card TRANSPORTATION BILL 2 Year, $ 105 billion highway bill passed in June 2012 has expired Currently operating under a stop-gap bill until May of 2015 when a longer term bill will be debated A longer term bill would provide contin
Slide 15: Dredge Material Placement Area
Dredge Material Placement Area Snapshot Orion Advantages Total size: 336.5 acres Only private dredge material Location: Houston Ship Channel placement area in upper Houston Ship Channel Description: 336 acre private dredge material Provides long-term revenue placement area along the Housto
Slide 16: Summary
Summary Improving Strong Long Building Market Term Market The Conditions Opportunity Future Multiple end-market Position Orion to meet Protect, Manage, drivers for future demand Prepare future growth opportunities 16